Apple WWDC: Apple Pay collaborates with Square for a seamless payment method
Apple in September partnered with Visa, Mastercard, American Express and many other issuing banks to facilitate iPhone users in storing their credit card accounts and making payments just by using their device on the payment terminals. Now to extend their support for small retailers as well, Apple has partnered with mobile payment company Square to make sure small businesses are also benefited with the move. The reach has also increased from a mere 220,000 locations to over a million which will be stiff competition for competitors like Android Pay and Samsung.
Apple Pay brings secure payment methods for all your shopping
Along with this Apple is working in close quarters with social-media aggregator Pinterest to allow the users to purchase things directly off of Pinterest app using Apple Pay. So what all new developments are going on with Apple Pay, and how is the company looking to extend their mobile payment reach even further? The announcements made at a keynote during the WWDC 2015 in San Francisco made a few things clear.
Apple Pay’s mobile payment system has been renamed from Passbook to Wallet with the ability to digitally store things like airline or concert tickets, and also loyalty cards from top retailers have also been added. This makes sure that you have the right card for the supported retailers like Dunkin’ Donuts, Kohl’s, JC Penney or BJs. What this means is that you can now make contactless payments with your iPhone, Apple Watch or iPad without any hassles. Let’s brief you in on how you can do so with your favorite Apple devices.
To setup Apple Pay you have to add credit or debit card information from iTunes account to Passbook. This can be done easily on your iPhone 6, iPad Air 2, iPad mini 3 and Apple Watch.
a) iPhone 6
One can make payments with Touch ID which uses NFC technology to authenticate payments without even opening any app. All you have to do is hold your iPhone 6 near the reader with one finger on the Touch ID, and then a beep confirms the transaction, it is that simple!
b) Apple Watch
To pay with Apple Watch you have to double click the side button and bring the display near the contactless reader. When there is a beep, it indicates the confirmation of a payment.
Payment within apps is also simple, one has the luxury of paying with a single tap on the app and placing the finger on Touch ID.
Apple has made a point to make the service ultra-secure to protect the credit/debit card information of the user. To do this, Apple Pay assigns a unique Device Account Number to each of your card and encrypts the information to store it on Secure Element (instead of storing it on the cloud), a chip on every Apple device. When the user makes a purchase, a transaction specific dynamic security code processes the payment, so that information is not shared with third-party merchants.
The transaction details are not stored on Apple Pay itself and the recent purchase details are only stored in Wallet for convenience purpose. As an added layer of security, the card information is not revealed to anyone when you make payments in a store for example.
In case you lose your device or it is stolen, the Find My Phone feature puts the device in Lost Mode and terminates Apple Pay service. Additionally it makes sure that no credit or debit card payments can be made during this time.
Apple Pay has extended its support for many banking partners like Regions, SunTrust, TCF Bank and many more. To check out the complete list of compatible banks, click here.
7) Square partnership
As I told you earlier, Apple Pay will collaborate with Square to make payments using a NFC and chip enabled gadget that will make payments by simply tapping phone on the Square Reader. The service will cost a standard fee of 2.75 percent to the merchants, but it will definitely make it easier for the users to make payments. The Square reader is a pocket-friendly gadget that will come for $49, and Square will provide first 250,000 readers for free!